Question

Is corporate-level diversification a reasonable strategic option for your firm (Microsoft Corporation)?

• If yes, in what ways might a corporate-level diversification make sense for your firm? What would be the justifications and reasons for your assertion?
• If no, then why does this strategy not make sense for your firm? Why is diversification a bad idea?

Answer 1

Corporate level diversification is a better strategy for the Microsoft because Microsoft is into the existing business of making windows and softwares which has been the hallmark of its existence but it needs to get into other products as well in order to increase the efficiency of the company and maintaining the corporate strategy diversification because the company has been a mature company and it needs to get into other businesses or acquire other businesses to expand its Global markets in order to survive and sustain in the long run.

it can enter into corporate level diversification through adding of different products and chain of other services like it can get into mobile phone making or it can get into tablets on a larger scale and penetrate the market.

Diversification is a good idea for Microsoft because it has a a high cash flow on its hands and it has the possibility of entering into another business and it can also try this because it can deal with the failures.it is a technology company and it has a higher chance of succeeding in diversification of other facilities.